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Steering Committee Report on Communication and Information

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Steering Committee Report on Communication and Information TYPE Steering Committee Sr. No.24/2001 Report of The Steering Committee on Communication and Information for The Tenth Five Year Plan (2002-2007) Government of India Planning Commission May, 2002 ;kstuk vk;skx ;ksstuk Hkou ubZ fnYyh &110001 PLANNING COMMISSION YOJANA BHAVAN NEW DELHI-110001 lnL; MEMBER FOREWORD I have great pleasure in submitting the Report of the Steering Committee on Communications & Information for the Tenth Five Year Plan (2002-07). Knowledge based industries are fast emerging as a major source of generation of wealth and employment in the modern economies. The rapid development of information and communication technology (ICT) has changed the basis of comparative and competitive advantage of countries and businesses. India is perceived to have a special comparative advantage in Information Technology and IT enabled services. It is an area where the country has the potential to be fully competitive and establish global dominance. ICT is equally important for realizing India's potential in generating wealth in the other knowledge areas like bio-technology, pharmaceutical, bio- informatics, medicine etc. Our policies in the Tenth Plan have to be guided by the goal of realizing India's full potential in these areas. Providing world-class telecommunication services at the most competitive rates has to be an integral part of the entire strategy. Convergence of computer, communications and content has opened new avenues of communication and the way people and organizations share, process and exchange information. E-governance could be a major tool of ensuring good governance and it holds great promise for revolutionizing governance in India. Adoption of integrated approach based on convergence for finding solutions to the various issues facing the Telecom, Posts, IT and I&B sectors has been one of the guiding principles for the Steering Committee for making its recommendations. Development of world-class and efficient communications and information network in line with our national and international goals has been the basic theme guiding the Report of and various policy recommendations made by the Steering Committee. I hope that the Report of the Steering Committee may provide useful inputs for determining our policies for development of a world-class and efficient communications and information network which is central for the optimum and balanced growth of all sectors of the economy. I would like to thank all members of the Steering Committee for excellent cooperation, purposeful deliberations and providing valuable inputs for the Report. I would also like to thank Shri Mantreshwar Jha, Principal Adviser (C&l), Shri S.S. Batra, Adviser (C&l), Shri Nirmal Singh, Member-Secretary, Shri S.S. Das, SRO and other officials of the Division for assisting me in the work relating to the Steering Committee and preparation of the Report. (N.K. SINGH) CONTENTS Item No. Subject Page No. 1. Introduction 1-2 II. Telecommunications 3-20 III. Posts 21-31 IV. Information Technology 32-47 V. IT Enabled Services 48-52 VI. Information & Broadcasting 53-60 VII. Notification on Steering Committee 61-66 VIII. Final List of Members of the Committee 67-69 4 INTRODUCTION Towards formulation of Tenth Five Year Plan (2002-2007), Planning Commission constituted a Steering Committee on Communications & Information under the chairmanship of Member (Infrastructure) vide Planning Commission O.M.No.No.4(4)/35/2000-C&I, dated 21st December, 2000. The notification detailing composition, terms of reference, etc. is given at Annexure-I. The basic objective of the Committee was to make recommendations on the various policy matters relevant to the formulation of Tenth Five Year Plan of Telecommunications, Information Technology (IT), Information and Broadcasting (I&B) and Postal sectors. Besides representatives from various Government Departments, it also included members from financial institutions, public sector units, industry associations, private corporate sector, media and academics. 2. The first meeting of the Steering Committee was held on 20.2.2001 under the chairmanship of Shri M.S. Ahluwalia, then Member, Planning Commission. Based on the discussions held in the meeting, it was decided to constitute five Working Groups on Telecom, Posts, Information Technology, Information & Broadcasting and Convergence & E-governance. 3. As decided in the Steering Committee, the terms of reference and composition of the five Working Groups were finalized by the Commission in consultation with the concerned administrative Ministries/Departments and these were constituted on 23rd April, 2001. The Working Group on Convergence & E-governance was headed by Pr. Adviser (C&I), Planning Commission. The other Working Groups were headed by the Secretaries of the respective Ministries / Departments. 4. Consequent upon his appointment as Member of the Planning Commission, Shri N.K.Singh took over as the Chairperson of the Committee w.e.f 11th July, 2001. The Committee decided to co-opt Shri Mantreshwar Jha, who took over as Principal Adviser in the Commission w.e.f 9th November, 2001 and Shri J. Bhagawati, Jt. Secy., Ministry of Finance. In due course, a representative each from FICCI, MAIT and IDFC was also co-opted on the Committee to ensure due representation to these organizations and make the Committee more broad-based. Final list of Members of the Committee is given in Annexure-II. 5. Besides numerous presentations and discussions with experts, individual Members and organizations/bodies associated with the Information, Communication and Entertainment (ICE) Sector, the Committee held other three full fledged meetings on 20th December, 2001, 24th January, 2002 and 6th March, 2002. The reports submitted by the five Working Groups constituted by the Committee were considered. The major issues and recommendations were discussed and deliberated upon in great detail. 6. The discussions held in the meetings of the Committee, the reports of the Working Groups, presentations made before the Committee, papers and comments received from various sources, the reports of the National Task Force on Information Technology and the New Telecom Policy, 1999 were the key inputs for finalizing the report of the Steering Committee on Communications and Information for the Tenth Five Year Plan. 5 TELECOMMUNICATIONS Telecommunications is one of the prime support services needed for rapid growth and modernization of various sectors of the economy. It has become especially important in recent years because of enormous growth of Information Technology (IT) and its significant potential for the impact on the rest of the economy. India is perceived to have a special comparative advantage in information technology and in IT enabled services. However, the extent of advantage depends critically on high quality telecommunication infrastructure. Keeping this in view, the focus of Tenth Plan has to be on the provision of world class telecommunication facilities at reasonable rates. Provision of telecom services in rural areas has also to be a thrust area to aid and attain the goal of accelerated economic development and social change in the rural sector. Although the telecom network has grown rapidly in recent years, its growth needs to be accelerated further in the Tenth Plan. It is equally important to accelerate structural changes in this sector in line with the trends in other countries. Present Status of Telecom Network 2. The basic telecom services network has expanded from about 84 thousand connections at the time of Independence to about 385.95 lakh working connections as on 31.03.2002. Basic services network constitutes the bulk of the phones accounting for about 86% of the total telecom network. The main features of the present telecom network are given in the Box below: Status of Telephone Network – As on 31.03.2002 Total number of exchanges 35023 Number of rural exchanges 26953 Total Fixed Telephone connections 385.95 lakh Number of Cellular mobile phones 64.31 lakh Trunk Auto Exchange Lines (TAX) 34.27 lakh Tele Density - All India 4.4 Number of Village Public Telephones 4.68 lakh Internet Connections –as on January 31, 2002 38 lakh Review of Ninth Plan (1997-2002) 3. During the Ninth Plan period, a record growth rate of telecom services was achieved in the country. The network (equipped capacity) grew at an average rate of about 22 per cent. Growth of both cellular mobile phones and fixed line phones has been equally impressive. While private sector concentrated in cellular mobile phones segment, the growth in the Government sector was primarily due to fixed line connections. Against the target of providing 237 lakh Direct Exchange Lines (DELs), about 240.55 lakh additional DELs have been provided during the 9th Plan. The cellular network has grown from a small base of 3.40 lakh connections to 64.31 lakh connections by the Plan end. As a result of this growth, the tele density has nearly trippled from 1.57 at the beginning of the Ninth Plan to 4.4 as on March 31, 2002. Details in this regard are given in the table below: 6 Network Expansion – Ninth Plan (Lines in lakh) Item As on Net Addition – Ninth Plan As on CAGR 31.3.1997 Public Private Total 31.3.2002 Fixed 145.40 234.68 5.87 240.55 385.95 21.56 Cellular 3.40 2.14 58.77 60.91 64.31 80.00 Total 148.80 236.82 64.64 301.46 450.26 24.79 Tele density 1.57 - - - 4.4 - VPTs 2.61 2.061 0.00846 2.07 4.68 12.39 4. The performance of the Government sector i.e. Bharat Sanchar Nigam Ltd. (BSNL) and Mahanagar Telephone Nigam Ltd. (MTNL) has been impressive. Against the target of installing 185 lakh new connections in the original Plan which was revised to 222.7 lakh in Mid-Term appraisal for BSNL & MTNL and 237 lakh for the whole sector including private sector, the achievement during the Ninth Plan is 240.55 lakh connections in all including contribution of private sector i.e.
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